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| 7.A columnist is discussing how the efficient quantity of output for a good or service is determined. These two statements appear in his column:Statement 1: The equilibrium quantity of production for a good or service can be considered efficient as long as the marginal social benefit of that quantity is greater than its marginal social cost.Statement 2: Subsidies and quotas typically result in production of a good or service in quantities at which the marginal social cost exceeds the marginal social benefit.With respect to these statements: A:A:both are incorrect. B:B:both are correct. C:C:only one is correct |
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